How AI is transforming accountancy’s appeal Posted 07/31/2025 by AAT Comment & filed under Artificial intelligence. AAT tutor Dean Quartermaine was a software engineer before transitioning into a career in finance. He says that artificial intelligence isn’t replacing accountants – it’s making the profession more attractive to a new generation of talent. Two in five people would consider a career change to accountancy if administrative tasks were carried out by AI, according to new research from AAT. For Dean Quartermaine, course leader for AAT at Sheffield College, this statistic represents a fundamental shift that could address the profession’s ongoing talent shortage. Dean’s unique perspective stems from an unconventional career path. With an undergraduate degree in software engineering, he spent the early part of his career as a software engineer before redundancy prompted a complete career reset. “I started AAT distance learning, completing Level 2 and 3, then 4,” Dean explains. “Then I started in employment, working as a management accountant at various levels for a good number of years.” In 2022, Dean returned to university to pursue a Master’s degree in financial management, which was funded by his employer. This led to an associate lecturing role at Sheffield Hallam University before he took over as course leader at Sheffield College in June last year. AI skills for members AAT members can learn about AI, privacy, compliance risks and generative AI for accounting tasks in Learning Portal. Find out more The AI advantage beyond the hype Dean’s early exposure to AI, gained during his undergraduate dissertation on dynamic recurrent neural networks for stock price prediction, gives him a unique perspective on the technology’s evolution. “My first introduction to the world of AI was building essentially a primitive AI model,” he recalls. As AI started to emerge in the accounting sector, Dean was ready. He’d already been using tools like auto-entry that scan invoices and extract details through optical character recognition. “It learns along the way,” Dean explains. “Next time it does, it knows what it did last time and just speeds up that data entry process.” This practical experience aligns with AAT’s research findings, which indicate that 64% of respondents believe AI tools will enhance efficiency and accuracy in the accounting profession, while 78% of those currently in the profession think AI tools make accountancy easier by automating administrative tasks. The mundane task problem For Dean, the appeal of AI lies in its ability to eliminate the mundane tasks that can deter potential talent. “There is an entire subsection of the population and the accounting industry that don’t want to do any of that data entry stuff,” he observes. “They almost look at that as a reason not to be in the industry because they don’t want to be doing all that data entry and want to be doing something a little bit higher level than just processing invoices all day.” This sentiment is supported by AAT’s research, which shows that one in five accountants who have left the profession say they would return if automation could remove the more administrative aspects of the job. Additionally, 23% said they would have stayed in the profession longer if AI had been available to help them. Dean sees this as an evolution rather than a revolution. “AI is very good at repetitive tasks,” he explains. “Things like processing invoices repetitively all day, every day – let’s get a piece of AI to do it. It can do it while we’re asleep and allows us to focus on other aspects of accountancy. Redefining the accountant’s role The question of what accountants actually do lies at the heart of AI’s transformative potential. Dean is clear about where he sees the profession heading: “I’ve always seen us as trusted business advisors, being more strategic than just processing invoices all day. That’s the data entry task – to a certain degree, anyone can do that. As accountants, we’ve spent lots of time, money, and effort training to do something far more than just processing invoices.” Dean’s thoughts match with AAT’s findings, which indicate that 80% of current professionals believe AI enables accountants to focus more on providing advice and solving business problems, while 81% believe AI is generating greater opportunities by allowing accounting professionals to develop skills in other areas. Recent developments in the sector support this shift. Dean recently attended a Sage demonstration of their AI tool, Sage Copilot, which can automatically identify outstanding VAT returns and fire off reminder emails. “Again, just frees up all that time of you manually writing emails,” Dean notes. “When the information comes back, AI can start to process that, saving up all this time of chasing people for things that are not adding any value. “AI will shift an accountant’s focus from just processing data to becoming strategic advisors. By automating repetitive, time-consuming tasks, AI will free up accountants to concentrate on higher-value activities that need human judgement, critical thinking, and good people skills.” The trust factor Despite AI’s capabilities, Dean believes human oversight will always be essential. “We don’t understand what AI does – we understand the input, we understand the output, but that little bit in the middle, we don’t understand it all the time,” he explains. “We won’t necessarily trust it, so we’ll always want to check the output. And that’s what accountants are there for – to check and make sense of that output.” This perspective addresses one of the key concerns raised in AAT’s research, where 71% of respondents believe that individuals using AI tools must be appropriately trained. Dean emphasises the importance of understanding AI’s capabilities and limitations: “AI is good at repetitive data processing. It can do it quicker than we can. The accuracy – yes, it’s getting there.” Education for an AI-enhanced profession As a tutor, Dean is passionate about preparing the next generation for an AI-enhanced profession. His role involves not just teaching traditional accounting principles but also helping students understand how to leverage technology effectively. “Part of my role is to really tell the benefits of AI where it can offer us considerable benefits and try to make sure that people are not scared about embracing the technology,” he says. The college’s approach reflects broader industry trends. 78% of people surveyed said they are interested in upskilling due to the rise of AI at work, with 32% specifically wanting to learn AI and machine learning tools – rising to 40% among 25-34 year olds. In summary Dean’s message to both current professionals and potential newcomers is clear: “AI will not replace the accountant. The accountant’s not going anywhere. We need to embrace technology, and AI is a tool that enables us to do our jobs better, adding a higher level of intelligence and critical insights to the numbers that help drive informed decision-making. “There’s momentum here to use AI as an addition to an accountant’s tool set, which will allow us to deliver more impact to the businesses we work with, the clients we work with, and the industry as a whole.” AAT’s Skills Campaign research surveyed 1,000 members aged between 18 – 65. Further reading Working with AI: boosting your career in the right way AI focus: how artificial intelligence can help accounting students thrive Accounting software: analysis tools to make your life easier AI skills for members AAT members can learn about AI, privacy, compliance risks and generative AI for accounting tasks in Learning Portal. Find out more
A strategic role: Helping your clients plan for uncertainty Posted 07/28/2025 by Annie Makoff & filed under Data analytics, Members. Global uncertainty is here to stay, so how can businesses minimise disruption? Businesses are dealing with global and market uncertainties as a matter of course these days. Trump’s international tariffs, changes in government policies, tax increases, extreme weather events, war and conflict all have the potential to disrupt business operations. Disruption from the Covid-19 pandemic saw many businesses pivot into different markets and products. Others used it as an opportunity to revisit their business models and review their own operations and practices. But while the pandemic is behind us, the propensity for future business disruption – whether on a global scale or more localised – remains high due to our VUCA world [volatility, uncertainty, complexity and ambiguity]. Prepare for key financial reporting changes in 2025 and 2026 Significant updates to accounting standards are coming, so it’s essential to understand their impact on financial statements. Get ready Business owners need to have plans and policies in place to manage and mitigate potential business threats. It’s impossible anticipate every eventuality, but scenario planning and forecasting activities are now crucial. Planning for uncertainty therefore needs to be high up in the priority list. Accountants play a huge role in supporting their clients to adequately prepare for uncertain times. Advice and actions might include: regularly monitoring cash flow monitoring global markets to be aware of developing issues as early as possible scenario planning to explore different outcomes reverse stress testing to help identify the possible outcomes of potential disruption investigating alternative revenue streams. So how, specifically, are accountants helping their clients plan for and deal with potential business disruption? Harness proactive planning and utilise real-time insights Becki Roberts, Accounting and Business Services Director, Nottingham office, UHY Clients are currently most concerned about inflation and interest rate volatility, as rising costs and borrowing rates are placing significant pressure on profit margins. Supply chain disruptions also remain a key issue, with global instability continuing to affect the availability and pricing of goods. Additionally, labour shortages and wage pressures are a major concern across many sectors. Businesses are struggling to recruit and retain talent, while increases in the minimum wage and national insurance are further tightening margins in some industries. Our approach Our advice is rooted in proactive planning and harnessing real-time insights. We encourage clients to embrace cloud accounting tools, such as Xero, which provide instant access to financial data and support faster, more informed decision-making. Cash flow forecasting is essential. We work with clients to build rolling forecasts that adapt to changing conditions. We also work closely with clients on scenario planning, helping them model potential economic outcomes such as interest rate hikes, so they can prepare robust contingency plans. We’re supporting our clients by leveraging cloud accounting platforms to deliver real-time financial insights, track key performance indicators, and provide tailored management reporting. Our advanced forecasting and scenario modelling services help clients simulate various business situations, enabling them to make confident, data-driven decisions. In addition, we offer training and support to ensure clients fully understand their financial position and feel empowered to take appropriate action when needed. Verdict: We advise proactive planning and utilising real-time insights. Keep an eye on costs but don’t get distracted by short-term issues Reme Holland, Financial Planning Partner, Albert Goodman It feels as though uncertainty is everywhere at the moment. Inflation, interest rates, the economy as a whole. Cash flow and the ability to make sustainable profits are at the forefront of clients’ minds. The current uncertainty around tax and the increased cost of doing business too, has put a strain on plans. A lot of clients like to make contributions to their own pension funds via their companies. Following the increase in costs brought on by the National Insurance changes, these have been reduced in some cases and will impact retirement pots. My advice? Stay attached to the detail. Cash flow is so important. If business owners have a clear exit or retirement strategy, keeping a close eye on costs and ensuring they are paying themselves is key. Clients need to ensure they are always keeping an eye on long-term goals. Short-term issues will always be short-term. So don’t get caught in short-term thinking or allow best-laid plans to be derailed. During times of uncertainty, it can be difficult to make decisions, leaving clients uncertain about which path to take, and even what options are available. This is why the annual review for clients is so important: using cash flow tools and being present for thorough discussions can help put focus on key areas and aid with decision-making. As a company, our goal is that clients leave conversations with us feeling secure, informed, comfortable and even confident in their decision-making. Verdict: We advise clients to keep a close eye on costs but not to get distracted by short-term issues. Assess possible effects of policy changes with regular dynamic reviews Vipul Sheth, Chartered Accountant and MD, Advancetrack Clients have real concerns over how anti-business current government policies are and how quickly change is being brought about without consultation. We’ve already seen alterations in National Insurance Contributions and Minimum Wage rules – something that has added thousands to a typical clients’ outgoings. The Chancellor has repeatedly refused to rule out tax rises in the Autumn and clients are concerned that any increase will be aimed squarely at businesses, at a time when they should be focusing on growth. Strong financial forecasting is essential to help businesses withstand rising costs and potential shocks. The best, most nimble businesses will be carrying out dynamic reviews constantly to assess how a change in tax policy could impact their business. There’s also the ongoing geopolitical uncertainty too, which can add a cost to a business – and I’d always recommend working side-by-side with a qualified accountant or tax advisor to get that consultative advice early on. Businesses can’t prepare for every scenario, but those that try to stay ahead of the game will come out on top. Verdict: We advise carrying out regular dynamic reviews to assess how a policy change or other uncertainty could impact the business. Prepare for key financial reporting changes in 2025 and 2026 Significant updates to accounting standards are coming, so it’s essential to understand their impact on financial statements. Get ready
Accounting software: analysis tools to make your life easier Posted 07/25/2025 by AAT Comment & filed under Accountancy resources. You may have strong intuition of trends and performance within your business, but analysis tools will put hard numbers against your hunches and lend them credibility. Accurate and consistent data is vital in analysis. Without it, the exercises you conduct are at risk of being skewed and unreliable. Analysis tools can provide health checks across entire organisations in seconds using established rules each time, providing comparability and consistency. That helps with scaling up and improving efficiency. Take time to choose the correct software Perhaps counterintuitively, implementation of analysis tools should be an intensive process, regardless of whether you’re in practice or business. You shouldn’t be using one of these tools just by subscribing and clicking a few buttons. Every business has its own needs and you need to marry up what you’re trying to achieve with what the software can do. To be able to use analysis packages properly, you have to know the common problems that come up with them, and that only comes with testing. Be prepared for all outcomes Bringing in analysis tools will expose flaws in old processes and working practices, so it’s important to be prepared for when you put one of these systems in place. It will eventually help with efficiency, but could showcase flaws at the start, so you must adapt accordingly. Another consideration to make is how to manage the transition. New analysis tools should be sold as a positive introduction and not an attack on individuals working with current processes. Key features and benefits of analysis software Data visualisation: analysis software can integrate data from multiple sources and provide easy access to this information, creating a single source of truth. Financial reporting: this helps accountants to automate and analyse financial information, generating and drilling down into data, streamlining processes and monitoring the finances of an organisation. Trend analysis: features like descriptive, exploratory, inferential, predictive, and prescriptive analytics allow users to perform various types of analysis, from summarizing data to forecasting future trends. Improved accuracy and increased efficiency: by automating calculations and providing tools for data validation, analysis software minimises the risk of errors, while having the ability to handle large amounts of data which significantly speeds up the analysis process. Forecasting: good analysis software correctly uses current and past data to predict future trends. It can help a company to budget, create strategy for long-term goals and make future decisions. Tips for picking the right analysis software for you 1. Check your KPIs Knowing what you want to measure and how is a vital starting point. It defines the scope of data you’re looking at, sets your priorities and identifies which areas need most attention. Some programmes cast a very wide net, while others are function-specific, so having clarity on your focus is vital. 2. Check your needs Sometimes, the simplest solution is the best one. Most mainstream accountancy softwares, such as Xero, Quickbooks, FreeAgent, have built-in analysis tools. While these aren’t as powerful or as specific as some of the targeted softwares, they may well meet your needs. 3. Keep at it Giving apps like these a one-month trial is a waste of time. Like any change in habits, make a plan, give it at least three months, expect it to be challenging and stay strong. 4. Understand the software and its limitations Many of these tools are extremely powerful and offer insight that wouldn’t be possible without them. But they assist accounts, they don’t replace them. But the process can go wrong, and where it does, those mistakes can be replicated and lead to fundamental errors. Human oversight is essential. Further reading Are technological developments making accounting careers more attractive? Working with AI: boosting your career in the right way How your accountancy practice can use software to achieve process excellence
Updates from HMRC: July 2025 Posted 07/23/2025 by AAT Comment & filed under HMRC updates, Members. Information from the Revenue which could affect AAT members. HMRC periodically contacts AAT and other membership bodies on trials, changes and challenges that our members may wish to hear about. Here’s the latest. Celebrating our inspirational community Help us reward great work and spotlight exceptional people by nominating someone for AAT’s Impact Awards, open now. Nominate someone here Trial to suppress the CT208 reminder letter HMRC is trialling not sending Corporation Tax reminder letters (CT208) to 5% of customers who have an authorised agent from July 2025. It’s testing whether removing the CT208 will impact customers who are supported by an agent. To be able to monitor the impact of these letters on managing debt, the trial is due to end in December 2025. However, if the Revenue sees a substantial increase in debt overall, it will halt the trial completely. All customers can view their liabilities and payments in their HMRC online account, which shows their Live Accounting Period through the ‘Accounting Period Overview’ section. Agents can also view liabilities and payment on their clients’ behalf on HMRC’s Corporation Tax for Agents online service. HMRC will continue to send statutory Corporation Tax letters. Companies or associations must file a Company Tax Return if they get a ‘notice to file a Company Tax Return’ from HMRC. The deadline for filing is on the notice to file. All new Corporation Tax customers receive information on the reporting and Corporation Tax payment process and are signposted to guidance on GOV UK. Class 2 NICs calculations An issue has been affecting some Self Assessment taxpayers relating to Class 2 National Insurance contributions for the last tax year. The problem led to incorrect tax calculations being issued. HMRC had hoped that a fix would be implemented by the end of July. However, this is taking longer than anticipated and is now expected to be resolved by the end of September 2025. Unfortunately, this also means that incorrect Class 2 NIC letters will continue to be sent until this date. HMRC says, “We are sorry for the delay, and we understand that this may cause difficulties […] we appreciate your patience during this time. “We would like to reassure you again that customers who may have made a payment will either be refunded or have a credit added to their self-assessment statement. There should be no long-term impact.” Self assessment repayments failing automation In July’s Agent Update, HMRC reminded Agents of the common reasons why repayments are inhibited. The reasons are listed in the GOV UK document SAM113010 – Repayments: repayment work lists. PAYE codes 2024/25 Some agents are still experiencing an issue with PAYE codes for 2024/25 not being visible. HMRC would like to know if other agents are experiencing this. If the code is not visible, it asks that Agents report the issue to the Online Service Helpdesk. Personal tax query resolution service for agents HMRC says this service is specifically for PAYE and Self Assessment queries for individuals that haven’t been resolved by its Agent Dedicated Line or Agent Webchat. The service is not available for employer-related queries. Most employer-related queries (and issues for other tax regimes), can be picked up by HMRC’s parallel Agent Account Managers service, which mediates with one of HMRC’s business areas to reach a satisfactory conclusion to issues. Before using the Query Resolution service, you must have: Checked the ‘Where’s my Reply’ tool, and waited at least 20 working days since the reply date given by the tool. Tried at least twice to resolve the query by contacting the Agent Dedicated Line or Agent Webchat. Not already initiated a complaint with HMRC related to the query. This service is not available for progress chasing repayments. HMRC reports the form has been completed incorrectly in 36% of referrals; therefore it is important that criteria is met before submitting a query. It has added interactive steps into the process to ensure the ‘Where’s my Reply’ tool has been used, and the criteria considered. Celebrating our inspirational community Help us reward great work and spotlight exceptional people by nominating someone for AAT’s Impact Awards, open now. Nominate someone here
HMRC publishes ‘Transformation Roadmap’ in key step to modernise services Posted 07/22/2025 by AAT Comment & filed under HMRC updates, Members, Policy. The main announcements, summarised. On 21 July 2025, HMRC published its new ‘Transformation Roadmap’ which sets out a series of reforms and priorities for the organisation to improve its customer offer and close the tax gap, following an announcement of around £500 million in the Spending Review to support digital transformation. The roadmap consolidates a range of digital transformation initiatives into one comprehensive, public document positioned as a key step to modernise services, improve efficiency, and ultimately simplify interactions. This will happen through streamlined procedures, the use of technologies such as AI, digital self-serve options for taxpayers, and other initiatives. Targeted support will remain for the vulnerable and digitally excluded. The roadmap signals a willingness to work in partnership with professional bodies to turn its ambitions into practice, and we are looking forward to further dialogue with officials. The document itself is broken down into several sections, and we have outlined the key announcements from each section below. Celebrating our inspirational community Help us reward great work and spotlight exceptional people by nominating someone for AAT’s Impact Awards, open now. Nominate someone here Improving overall customer experience PAYE taxpayers will benefit from a new service to give them better visibility and control over their tax position, and a dedicated expenses portal for reliefs claims. Self-Assessment customers will benefit from expanded digital services, including for those no longer needing to file. Employed Child Benefit claimants will be able to report payments through their tax code, rather than registering for self-assessment. HMRC says that it’s committed to improving the experience of tax advisers and their clients. Specific measures to improve experience include: Introducing new capabilities to enable agents to digitally withdraw their clients from the Self-Assessment service. Enhancing the income record viewer which will expand the information available on their client’s income. Launching a new service to allow agents to digitally submit information which may impact their client’s tax code. Providing the ability for agents to track the progress of their clients’ submissions and repayments. HMRC will begin work to introduce a new customer relationship management system to build more personalised support to customers and their advisers, in addition to AI-driven navigation aids, marketing to boost HMRC app uptake and an improved tax-education offering. The public will also benefit from a new GOV UK ‘One Login’ which will begin to be onboarded by the end of 2026/27. Closing the tax gap HMRC will modernise how it collects and processes data to make it significantly easier to promote compliance. Through investment in its IT estate, HMRC will further close the tax gap, helped by enhanced case management systems to integrate the processing of letters, forms and penalties. The way casework is handled will improve through new risk targeting capabilities, a new automatic document identifier system to help caseworkers identify fraudulent documents, and enhanced AI-powered systems that provide rapid and clear guidance, speeding up casework. A new Digital Disclosure Service to allow customers and intermediaries to correct mistakes and pay liabilities and penalties for all taxes and duties, as well as a new secure digital channel for three-way communications between HMRC, customers and intermediaries. A roadmap setting out HMRC’s approach to software in the tax system will be published by April 2026, and the tax debt strategy will be updated with a roadmap to reduce debt year-on-year by end of 2025. An improved reward scheme for informants will be launched in late 2025, targeting serious noncompliance in large corporations, wealthy individuals, offshore and avoidance schemes. The roadmap sets out some specific measures to improve professional standards among tax advisers, which you should be aware of: Modernising HMRC’s tax adviser registration services and mandating registration of tax advisers interacting with HMRC from April 2026. Enhancing powers and sanctions for HMRC to act against tax advisers who facilitate taxpayer non-compliance, following a recent consultation. Implementing a requirement for tax advisers to obtain an Advanced Electronic Signature from their clients if they wish to continue to use the nominations process for certain income tax repayments. Working with industry to co-design a standard for customs intermediaries (due in 2026). Publishing guidance to clarify HMRC’s approach to, and role in, preventing and addressing intermediary harm. Exploring next steps on raising standards in the tax advice market, following the summary of consultation responses published in October 2024 (which AAT responded to). Reform and modernisation HMRC says that by 2030, it will be an agile department supported by a modern IT infrastructure, using innovative technology and AI, and with robust data capabilities and a highly skilled workforce. It will modernise its IT infrastructure, including updating or replacing its IT estate and legacy systems, ensuring HMRC’s systems are better joined up and protected against cyber threats. It will also modernise how customers interact with HMRC, including through the rollout of Making Tax Digital (MTD) for Income Tax Self-Assessment, increasing the use of e-invoicing, and modernising its services for corporation tax. HMRC quietly announced that it will not implement MTD for Corporation Tax, and will develop a different approach to its future administration, ensuring that it consults on any future changes. The shift is not surprising given the complexity of the tax makes MTD more difficult to implement, and no timeline has been in place. HMRC remains committed to improving digital services in this space, and we will continue to monitor it. AAT’s reaction AAT welcomes the publication of HMRC’s transformation roadmap, a significant milestone in modernising the UK’s tax system. This roadmap aligns with our members’ needs, promising faster response times, a simpler tax framework, and clearer guidance to support accountants, bookkeepers and entrepreneurs. We can finally expect to see much-needed improvements such as more information being pre-populated on tax returns, making National Insurance contribution refunds easier and faster for customers, as well as the digitalisation of the Inheritance Tax. AAT looks forward to collaborating with HMRC to ensure these reforms deliver a practical, stable and effective environment for our members and their clients. You see how AAT CEO Sarah Beale MAAT responded on LinkedIn. Next steps We’ll continue to work with HMRC on the practical detail as it turns the roadmap into an reality, including by sharing member feedback with officials as they deliver the plan. We will also support members to adapt to the changes as they are implemented. Celebrating our inspirational community Help us reward great work and spotlight exceptional people by nominating someone for AAT’s Impact Awards, open now. Nominate someone here
HM Treasury responds to its consultation on MLRs Posted 07/21/2025 by AAT Comment & filed under Anti-money laundering, Members, Policy. The key changes proposed to Money Laundering Regulations (MLRs). On 17 July, HM Treasury (HMT) published its response to the 2024 consultation on the Money Laundering Regulations (MLRs), sharpening the regime ahead of the Financial Action Task Force’s 2027 review. AAT has previously responded to this consultation, and the Government has positively responded to our calls for greater clarity and proportionality. The response details changes to close loopholes, clarify requirements and target customer due diligence (CDD) at high-risk activity, with other issues addressed through guidance in collaboration with AAT and other supervisors. We welcome many of the changes, such as removing references to euros, efforts to improve access to pooled client accounts, and changes to improve information sharing. We are also looking forward to engaging officials soon on updating guidance. Celebrating our inspirational community Help us reward great work and spotlight exceptional people by nominating someone for AAT’s Impact Awards, open now. Nominate someone here Key changes at a glance Customer due diligence Supervisors are going to update guidance on when a ‘business relationship’ begins, source of funds checks, mandatory enhanced due diligence (EDD) triggers, and verifying agents acting on behalf of customers. HMT and the Department for Science, Innovation and Technology will jointly produce guidance on using digital identities for MLRs identity verification checks. We would like to take this opportunity to remind our members to be cautious when choosing software providers to help with due diligence obligations. You should conduct sufficient research to ensure their reliability. Some accountants see these providers as one-stop shops, but the responsibility for undertaking CDD will always lie with the accountant. HMT will make amends to the MLRs to: Clarify that art dealers and letting agents follow the same transaction-based CDD requirements as high-value dealers. Provide carve-outs from CDD to assist the customers of an insolvent bank to quickly access new accounts. Clarify that EDD is required on only ‘unusually complex’ transactions, instead of all complex transactions. Introduce new requirements for pooled client accounts so that they can be offered in more cases than currently permitted under simplified due diligence rules. Mandate EDD only where the relevant transactions involve a person established in a ‘Call for Action’ (‘black-list’) country, instead of in a ‘Jurisdiction under Increased Monitoring’ country (‘grey-list’). System coordination The Financial Regulators Complaints Commissioner will be added to the list of relevant authorities in Regulation 52 to support investigating complaints about the FCA. Improving the effectiveness of cooperation between supervisors and Companies House, the role of which is becoming increasingly important in tackling economic crime. HMT will work with supervisors to ensure that guidance is clear on how to carry out risk assessments, encouraging sector-specific guidance and case studies where possible. The Government will publish further details on how system priorities (high-level threats) align with the National Risk Assessment when each new priority list is published. The FCA will be able to share more confidential information about cryptoasset firms. The scope of MLRs The sale of ‘off-the-shelf’ companies will be regulated to close a known loophole. Upcoming legislative reforms will make changes to ensure firms authorised for new cryptoasset activities will not be required to additionally register under the MLRs. EUR → GBP: All monetary thresholds in the MLRs will be converted to GBP on a 1:1 basis, simplifying compliance (except where FATF thresholds would be impacted). Reforming the Trust Registration Service (TRS) Trusts without UK trustees that acquired UK land before 6 Oct 2020 will have to register if they still hold the property. All such trusts will be subject to TRS data sharing (subject to a legitimate interest test). However, the Government will also introduce a de minis exemption for certain trusts currently required to register, lowering administrative burdens. The Government will amend the MLRs to include an exemption from registration, for two years following the death of the settlor, of certain trusts, as well as of Scottish survivorship destination trusts. Proposed further MLRs revisions Overseas sovereign wealth funds operated by listed central banks or public bodies will be exempted from MLRs for their exempt activities. An amendment to the MLRs will clarify that the definition of ‘insurance undertaking’ does not include certain reinsurance contracts (deemed low risk). Certain requirements for cryptoasset businesses in the MLRs will be aligned with requirements for credit and financial institutions to ensure that crypto firms apply the same counterparty due diligence checks. The Government will remove stamp duty reverse tax from the taxes which trigger registration, as some exempt trusts can become registrable only based on paying this tax. AAT’s reaction AAT will closely monitor the implementation of MLR reforms and will soon engage officials on creating more effective guidance to help our members navigate them. AAT CEO Sarah Beale MAAT used this opportunity to remind members that, while compliance can feel heavy, “it’s our chance to keep the UK’s financial system safe and trusted”. If in doubt, we have a range of support and resources available. You can read Sarah’s full response on Linkedin. Celebrating our inspirational community Help us reward great work and spotlight exceptional people by nominating someone for AAT’s Impact Awards, open now. Nominate someone here
Employment Rights Bill changes and their effects Posted 07/21/2025 by AAT Comment & filed under Employer newsletter, Members, Pensions and payroll. With the Employment Rights Bill going through the House of Lords, we look at the key reforms under consideration, and how accountants would be affected. The Employment Rights Bill was published on October 10, 2024. The legislation introduced 28 significant reforms to a range of measures that aim to modernise and enhance employment rights for workers. It includes provisions for zero-hours contracts, fire and rehire, flexible working and unfair dismissal, as well as reforms related to trade unions, industrial action and sexual harassment. The Bill is currently in the report stage in the House of Lords and has been subject to amendments during its progress through Parliament, which will be considered when it returns to the Commons. In July, the Government published a roadmap for the Bill’s implementation, outlining consultations and phased implementation dates, beginning those taking effect when it receives Royal Assent and those entering force through to 2027. Xero’s MTD for IT solution Get a competitive edge with Xero. Attend the showcase to look at the tools and features available. Get your exclusive preview Zero-hours contracts Proposed date: 2027 The Bill does not include an outright ban on ”exploitative” zero-hours contracts, as had been expected. Instead, zero or low hours workers will have a right to guaranteed hours, and payments for short-notice cancellation of shifts, with corresponding rights for agency workers. Employers will be obligated to offer workers whose hours regularly exceed zero or minimum hours a contract that reflects the hours worked during a 12-week reference period. The threshold for what constitutes a “low” number of hours will be defined in regulations. This will affect workforce planning and budgeting, particularly in sectors with fluctuating demand. For accountants, this will mean reviewing and potentially adjusting existing contracts, implementing systems to track and calculate the average hours worked by zero-hours workers over the reference period, and considering the impact on payroll. Fire and rehire Proposed date: October 2026 The Bill aims to restrict employers’ ability to use ‘fire and rehire’ and ‘fire and replace’ practices where employers dismiss employees and offer to re-engage them on new, often less favourable, terms. It looks to “[close] the loopholes which allow firms to engage in these unscrupulous practices”. The Bill would make it automatically unfair to dismiss an employee for refusing to agree changes to their employment contract – such as pay, pension, hours of work, holiday entitlement and other changes to be defined in regulations – or for planning to replace them with someone on different terms for the same job. There will be a limited exception in which a dismissal will not be deemed automatically unfair where the change is in response to financial difficulties affecting the ability of the business to continue as a going concern and could not reasonably have been avoided. Accountants may be required to verify the financial difficulties an employer claims to be facing by reviewing financial statements, assessing the company’s overall financial health, and potentially engaging with external auditors. Flexible working Proposed date: 2027 Employees currently have the right to request a flexible working arrangement from their first day in a job. Employers can refuse based on one or more of the eight business reasons listed in legislation. The Bill will make it harder for employers to refuse requests by introducing a new requirement for any refusal to be “reasonable”. The ability to refuse a request based on any of the eight reasons will remain, but an employer must explain in writing the grounds for any refusal, and why their refusal is considered reasonable. Employers will also need to consult with the employee before refusing a flexible working request. The Government will set out in regulations the steps that employers will need to take as part of this consultation. Accounting firms will need well-defined flexible working policies that outline the process for requesting, assessing and approving these arrangements, and consider factors like client needs, deadlines and team workload. Unfair dismissal Proposed date: 2027 The Bill will remove the two-year qualifying period of employment for the right to claim unfair dismissal, making it a day-one right. However, this protection will not apply where the employee has signed a contract but not yet started. The Government plans to implement a nine-month statutory probation period, during which a “lighter touch” dismissal test will apply if an employee is terminated within three months of the period ending, due to capability, conduct, or legality concerns. Several aspects of implementation will be consulted on, including the length of the statutory probation period, and how the ‘lighter touch standards’ for dismissal will operate, and the compensatory award rules for unfair dismissal during this period. Pay and holiday Proposed date: April 2026 Statutory Sick Pay (SSP) – the minimum statutory payment an employee is entitled to for periods where they are unable to work due to illness – will be made available to all workers, with no waiting period and no earnings threshold. There will no longer be a three-day waiting period for SSP, and the lower earnings limit (currently £123 a week) will be removed so that all eligible employees, regardless of earnings, will be entitled to SSP at a rate of 80% of weekly earnings. This may require adjustments to payroll processes and software to accommodate the new rules, including calculating SSP from day one and potentially calculating it based on a percentage of earnings for some employees. Employers must maintain records demonstrating adherence to statutory holiday entitlement and pay regulations for a minimum of six years. Not maintaining such records constitutes a criminal offence. Sexual harassment Proposed date: October 2026 From October 2024, employers are required to take “reasonable steps” to prevent the sexual harassment of staff and agency workers in the course of their employment. The Bill will strengthen the duty to include taking “all” reasonable steps. Further regulations will set out what amounts to “reasonable steps”, such as carrying out risk assessments and implementing harassment policies and complaints procedures. Collective redundancy Proposed date: Increased protective award – April 2026; New threshold – 2027 The Bill will expand the threshold for collective redundancy consultations, which currently kick in when employers propose 20 or more redundancies within a 90-day period at a single site or establishment. The current threshold will be maintained; however, an additional test will be implemented that considers the total number of redundancies across the whole organisation. This may be defined as either a percentage of the workforce or a specific number of redundancies. The Bill would also increase the maximum penalty for not meeting collective redundancy consultation requirements from 90 days’ pay to 180 days’ pay for each affected employee. Equality Proposed date: Paternity and unpaid parental leave – April 2026; dismissal protection and bereavement leave – 2027 Employers with more than 250 employees currently must publish annual gender pay gap reports covering their employees. The Bill will require them to now produce action plans on how to address their gender pay gaps and on how they will support employees through the menopause. The Government will also strengthen protections for pregnant workers, making it unlawful to dismiss them within six months of their return to work, except in specific circumstances. The Bill will also remove the current qualifying period for paternity leave of 26 weeks, and unpaid parental leave of one year, so that employees will be able to take leave from day one. Parental bereavement leave This was introduced in April 2020, and will also be extended to the right to at least one week of bereavement leave following the death of a family member. This could also cover pregnancy loss. Fair Work Agency Proposed date: April 2026 The Bill will establish a Fair Work Agency that will bring together existing enforcement functions, including minimum wage and statutory sick pay enforcement; the employment tribunal penalty scheme; and labour exploitation and modern slavery, as well as introducing the enforcement of holiday pay policy. The Agency will also have the power to demand information, enter premises, enforce holiday pay and SSP, issue penalties, bring Employment Tribunal claims on behalf of workers, provide legal assistance and recover enforcement costs. 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Study Smart, Not Hard: Ten Tips for Accountancy Students Posted 07/21/2025 by Marianne Curphey & filed under Study tips. Ace your way through revision, work-life balance, study techniques and CPD with these proven tips. Learn how to revise effectively and make the most of the AAT resources available, from branch meetings to short courses and online articles and study tips. 1. Revise to your strengths “How we learn shapes our memory, so students should think about what type of learner they are before revising,” says John Draper, a chartered accountant and AAT Lecturer at University Centre Leeds. “For visual learners, turning notes into a mindmap is a good way to commit key topics to memory. Those who prefer to listen can record their notes and play them back; whereas reviewing flashcards or practising old papers will help those who learn through doing.” Robbie Bryant, Head of Education and Development at Open Study College, an online learning platform which offers AAT accounting and bookkeeping qualifications, suggests the Pomodoro Technique, a time-management method that can help you break down your study sessions into manageable intervals. Here’s how it works: Choose a task that you want to focus on, such as revising a specific topic or writing an essay. Set a timer for 25 minutes. Work on the task without any distractions until the timer goes off. Take a 5-minute break. Repeat the cycle four times, and then take a longer break of 20-30 minutes. 2. Get organised Staying organised limits distraction – keeping reference materials together will prevent you from having to interrupt study sessions. John Draper recommends transferring hand-written notes to a three-ring binder or separating digital documents into folders categorised by topic. “Use whatever system works for you, the point is to simplify the act of revising.” 3. Focus on a new topic each day. “It’s better to immerse yourself in one area per study session,” says John Draper. “Use the 1247 method to quicken your understanding of difficult areas: spend one hour revising a topic on the first day, repeat the day after for 30 minutes, then again on the fourth and seventh days for 5-15 minutes. It requires less time as you go on because your brain will have already comprehended the topic.” Robbie Bryant says other revision techniques which can be effective are: spaced repetition – a technique that involves reviewing material at increasingly longer intervals mnemonics – memory aids that use associations or patterns to help you remember information active recall, which allows you to move information from your short-term memory into your long-term memory by using flashcards or writing down everything you know about a subject, a technique known as “blurting” 4. Create a regular timetable that works for you It’s the quality, not the quantity of the revision that is important. “‘A little bit a day helps the knowledge to stay, but the timing should work for you,’” says John Draper. “Research shows that sleeping after learning can help retain information for up to a week later, which is great for those with work or parental commitments who want to slot in a revision session before bed.” Kerrie Given, Senior Manager at Prime Accountants Group in Solihull, says she found studying in smaller, focused chunks rather than marathon sessions led to better retention and understanding. “Recognising the importance of energy management, I incorporated short breaks into my study routine,” she says. “These breaks not only recharged my focus but also helped combat the notorious foe of productivity – procrastination.” 5. Practice papers and timings While revising your course material is an excellent way to absorb the information ready for the exam itself, prepping yourself to be able to respond under test conditions is just as important, says Glenn Collins, Head of Technical and Strategic Engagement at ACCA. “Be sure that you can articulate yourself and your knowledge in the way the examiner expects to see, and that you can comfortably work within the timings of an exam to get everything down on the paper,” he says. “Set exam conditions at home – silence and a timer – so you can get a good idea of how the exam itself will feel.” 6. Get creative John Draper says that when it comes to AAT exam preparation, creative approaches work just as well as cramming. “Placing post-it notes where you can see them every day, like on the bathroom mirror, will help you to memorise key information (while brushing your teeth, for example). Funny acronyms, such as DEADCLIC (which stands for Debits, Assets, Expenses, Drawings, Credits, Liabilities, Income and Capital), can help you remember debits, credits and other accounting techniques. Recite the acronyms as you travel to work or college.” Robbie Bryant says mind mapping is another visual technique that can help you organise your thoughts and ideas in a non-linear way. “This technique can help you understand more complex topics more deeply, make connections between different concepts, and remember information more effectively,” he says. “It can also help you be more creative and flexible in your thinking.” 7. Be confident with finance and business language Whether you’re brand new to the world of finance, accountancy and business or a seasoned pro topping up your skills, the language we use in this profession is not typically things you find in the day to day conversation, says Glenn Collins at ACCA. “Make sure you’re confident in understanding, explaining, and applying the terminology you’ll be talking about when sitting your exam,” he says. This is especially true if you’re keen to specialise, as sometimes terms can be applied differently depending on how the sector or industry uses them. 8. Use feedback and collaboration Studying can be a solo experience, even when you are in a wider cohort, but it’s important to reach out to your peers and tutors to get feedback on your work, says Glenn Collins. Find out where you’re strongest and weakest in your knowledge. “You can share your strengths with others and draw on tutor feedback and peer study groups to build up those areas where you are perhaps a bit weaker,” he says. “Use feedback to your advantage and work closely with those around you to both give and receive. Try not to see it in a negative way. Feedback on where you can improve is invaluable, and something you’ll receive all throughout your career, so learning how to act on it and action it during your exams is an excellent starting point.” 9. Be realistic and prepared Everyone learns and studies differently, so it’s important to approach things exactly the way that works for you, says Glenn Collins. “Some people thrive under pressure and last minute cramming. Others prefer a steady timetable of revision and exam practice. Find the method that works for you and stick to it. If you are already working or have other commitments, be realistic about what you can accomplish in your free time without burning yourself out. Take breaks, make sure you’re well rested before the exam, and keep calm during the examination.” 10. Make space for downtime John Draper also cautions that maintaining a good work/life balance is crucial in the lead up to exams. “You won’t retain information if you’re hungry, tired or stressed,” he says. “Make sure you’re eating well and taking regular breaks. Exercise can improve your mood and revitalise you after a study session – allowing yourself space to switch off from revising will give your brain a chance to absorb the knowledge.” And finally…. Julie Phillipson, co-author of Survive & Thrive: A Graduate’s Guide to Life After University suggests creating flash cards you can carry in your pocket and use on the train, or bus. “Shorter bursts of revision will force you to concentrate, so use breaks in your journey to your benefit,” she says. “If you know you’ve only got 15 minutes before you need to get off the train, it’s amazing how well you can focus. You can replicate this at home by trying the Pomodoro technique.” Help from AAT Don’t forget that you can use AAT study tips, articles and online courses to help you expand your knowledge of the module you are studying. Going to an AAT branch meeting can help you deepen your understanding of a technical subject and contribute to your continuing professional development (CPD). Chatting to colleagues and fellow students about a topic that you are struggling with can also be help, and remember your tutor is always on hand to give you advice. Further reading: Study Tips: The best way to work through an assessment 9 top articles to help you nail your synoptic exam Coping with stress when studying for your AAT qualifications Study in chunks with AAT’s study timetable
Are technological developments really making accounting careers more attractive? Posted 07/18/2025 by Christian Doherty & filed under Artificial intelligence, Members, Technology. Some see a link between accountancy tech adoption and student interest in the sector. We take a look at whether developments such as AI are making work easier. The accounting profession is one of the oldest in the world (not quite the oldest, naturally). As such, it’s constantly changing and growing, and so is its appeal as a career path. Perhaps the most impactful change in the last decade has been the huge changes wrought by technology – first cloud computing and then, most recently, AI. And while technology has made many accounting tasks easier, the question remains as to whether it makes the profession more attractive to new entrants. AAT’s new research suggests that it does. We’ve found that two in five people would consider a career change to accountancy if administrative tasks were carried out by AI. Additionally, 23% of respondents said they would have stayed in the profession longer if AI had been available to help them. Xero’s MTD for IT solution Get a competitive edge with Xero. Attend the showcase to look at the tools and features available. Get your exclusive preview Software in the day-to-day Allee Bonnard, UK Managing Partner in Deloitte’s Audit & Assurance practice, says she believes technological developments will make the day-to-day job more enjoyable. “I think we’ll have better tools and the companies we audit will have better tools, which will mean that we won’t have to manipulate data into a form that we can analyse,” she says. “And although that saves us time, one, it’ll also make us better because we’ll have more time to focus on the things that matter most. And two, I think in five to 10 years, we will have a much broader remit of the things we have to give assurance on. I can’t even imagine what the metrics will be by then; it won’t just be the profit, it will also be all of the ESG metrics we will be signing off on as well.” There are more attractive elements Nick Jeffrey, Director of Professional Standards at Baker Tilly International rejects the idea that the chance to work with cutting edge software tools is the profession’s most compelling USP. “The back office systems – HR and finance and all those things – in most accounting firms are now much better than they were 10, 15 years ago, and the firms themselves are reasonably slick.” “However, if you’re coming into the accounting profession, it’s the variety which is the distinguishing factor. You’re not going be stuck in a shoebox office at a desk doing rubbish jobs all day. You’re out and about making a difference. “And you’ll have the tools: a nice laptop and probably a decent mobile phone, and tools on that laptop, which allow you to engage with the clients in as sophisticated a way as they are ready to do.” It’s true that accounting is a varied and interesting profession – and for some, this is a key reason for AI’s transformative potential. For Dean Quartermaine, course leader for AAT at Sheffield College, “AI will shift an accountant’s focus from just processing data to becoming strategic advisors. By automating repetitive, time-consuming tasks, AI will free up accountants to concentrate on higher-value activities that need human judgement, critical thinking, and good people skills.” Why should it matter whether tech is appealing? For some in the profession, tech’s appeal is a genuine concern, as fears that falling enrolment in accounting courses will lead to a skills shortage down the line. While that can’t be pinned on one factor alone, some worry sluggish adoption of tech may be part of it. D. Scott Showalter, CPA, CGMA, Director of the Jenkins Master of Accounting Program and Professor of Practice in Accounting at North Carolina State University recently suggested that one of the principal reasons for decreases in accounting enrolments could be put down to accounting firms’ “Inability to leverage technologies to transform the work and tasks performed by associates, and the lack of a diversity of clear career paths to success.” That was echoed by Sarah-Jayne Martin, Director of Financial Automation at accounting software house Quadient, who recently wrote that “Many accounting firms still cling to outdated practices when it comes to areas such as data entry and document handling, which discourages young talent and slows innovation. If the UK is to maintain its position as a global financial leader, it must align with expectations of a modern workforce and rethink how accountants are trained, how they work, and how firms operate.” James Hadfield, Partner and Head of Audit at Menzies agrees that the profession has to take care when leveraging its technology offer to potential entrants an attractive career path. “When we ask the question as to whether the profession is more challenging or more interesting at the moment, I think people’s initial answer might be ‘no’, but not for the reasons of technology. “In fact, I think technology is one of the ingredients that’s going help us out of it. But at the moment, I do think that in some cases new tech is another change that’s coming through and people are already feeling beaten up and a bit worn out; do they want a new type of technology and a new approach being put straight into the mix?” Case study: AI makes work more strategic Laraine Ukwu-George is Finance Coordinator at Archway, a charity supporting vulnerable adults. She first worked with AI in an accounts payable role at a university. “We upgraded our system to use AI technology to read the invoices with OCR (optical character recognition), so we wouldn’t have to manually input them because we had high volumes.” Rather than replacing human input, Laraine found that AI required careful human oversight and training. “We’d have to train the software, so we’d pass lots of invoices through, and if there were errors, every morning we’d have to check the error reports,” she explains. In her current role, Laraine continues to work with AI-powered tools. “We use AI technology – you might have heard of DEXT or Receipt Bank – for invoice capture. The more invoices you put in, the better it gets at it, but you still have to check it.” Laraine has witnessed firsthand how AI is elevating accounting roles beyond inputting numbers. “With the advancement and integration of AI, it now frees accountants up for more strategic tasks. The accountant’s role is changing from just number-crunching to strategic work,” she said. Case study: Some limitations apply Some in the accounting space are hesitant about AI, especially for those concerned it represents an existential threat to skilled professionals. Tahir Gupta is an apprentice at KPMG and, as such, is in the vanguard of younger accountants starting their careers very much in the AI world. “It has shifted the way that we work and perform our day-to-day tasks,” she said at the recent AAT Connect conference in London. “I work in auditing specifically and our take on AI is it’s very helpful in some respects and the things that it does: it makes things a lot quicker, it speeds tasks up, and there’s so many tasks now which don’t actually require people to do them because AI can do them.” So does the chance to use AI enhance the experience of a young accountant? “In the accounting and auditing space, what we’ve noticed is that AI can’t actually help with everything because we work with clients’ data, and using AI for those kind of tasks can be very challenging because we’re putting other people’s data at risk,” Tahir says. “So there are limitations to how much we can use AI to help our work, and it’s really important to establish what we want to use AI for and what we can’t, because we have a responsibility to deal with our clients’ data in a safe way and keep everything confidential. So I think the main thing with AI is to really understand how far we can go with it and how much we need to keep away from it as well.” Tahir recently joined the International Federation of Accountants Young Leaders Collective (with the support of AAT) and is now one of the two representatives from the UK. One of the key issues that that group discusses is sustainability in AI within the accounting space and whether it represents a game changer for new entrants into the profession. “I think getting into opportunities like that, doing your research and actually knowing what the benefits and cons are of using AI, are really important so that you’re not falling into the bad side of AI, you’re not becoming dependent on it. I really recommend, especially for the younger generation, understanding properly what AI is before they get carried away by it.” Xero’s MTD for IT solution Get a competitive edge with Xero. Attend the showcase to look at the tools and features available. 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UK’s fourth National Risk Assessment 2025 Posted 07/18/2025 by AAT Comment & filed under Anti-money laundering, Anti-money laundering, Members. Key messages from the National Risk Assessment of Money Laundering and Terrorist Financing, which will affect your firm-wide risk assessment. On 17 July 2025, Home Office and HM Treasury published the UK’s fourth National Risk Assessment 2025 (NRA 2025). How this relates to you Regulation 18 of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (as amended) requires that a relevant person takes appropriate steps to identify and assess the risk of money laundering and terrorist financing to which their firm may be exposed. ‘Relevant person’ includes AAT Licensed Accountants and Bookkeepers offering self-employed services. Such assessment, also referred to as ‘firm-wide risk assessment’, must be documented and kept up to date. AAT can request a copy of it as part of the Practice Assurance Review, or on an ad hoc basis. Your firm-wide risk assessment must consider a number of factors and sources of information, one of which is the National Risk Assessment of Money Laundering and Terrorist Financing. Celebrating our inspirational community Help us reward great work and spotlight exceptional people by nominating someone for AAT’s Impact Awards, open now. Nominate someone here Risks for ASPs Similarly to previous NRAs, the money laundering risk for Accountancy Service Providers (ASPs) remains high and the terrorist financing risk remains low. ASPNRA 2020NRA 2025Money LaunderingHighHigh (no change)Terrorist FinancingLowLow (no change) Some services provided by accountants are at higher risk than others. Those most at risk are: payroll, bookkeeping, trust and company related services, and tax advice. The NRA 2025 is also highlighting the following vulnerabilities in the accountancy sector: criminals using different firms for each service, which prevents assessing the risk holistically (fragmentation of services) non-compliance with the MLR 2017, whether conducted accidentally, negligently or complicitly for example, lack of appreciation and knowledge of money laundering/terrorist financing risks, lack of policies, controls and procedures, poor customer due diligence both at onboarding and on an ongoing basis providing services in a supply chain (can help the end user to maintain anonymity) clients in the form of firms or individuals with links to higher risk jurisdictions or overseas Politically Exposed Persons (PEPs) clients with cash-intensive business being used for the purpose of tax evasion profits from Modern Slavery and Human Trafficking Organised Crime Groups are laundered through money mules and front companies, such as hairdressers or grocery stores, often with the help of complicit accountancy professionals providing false legitimacy to front company accounts. Risks for TCSPs The money laundering risk for Trust and Company Service Providers (TCSPs) continues to be assessed as high. The key change observed is that the terrorist financing risks of TCSPs increased from low to medium. TCSPNRA 2020NRA 2025Money LaunderingHighHigh (no change)Terrorist FinancingLowMedium (increase) The NRA 2025 states that terrorist financing risks may be increased when additional vulnerabilities are present. For example: TCSPs are failing to appropriately verify customers’ identities complex corporate structures linked to difficulties in identifying the ultimate source of funds funds are held in or contribute towards trusts use of nominee directors/shareholders to hide beneficial ownership negligent or complicit behaviours presented by TCSPs inadequate due diligence and risk assessments conducted by TCSPs. More generally, the NRA 2025 makes it clear that there is increasing alignment between money laundering, kleptocracy and sanctions evasion. It also highlights how emerging technologies (such as Artificial Intelligence, digital platforms and cryptoassets) have enabled new methods for criminals to transfer and hide illicit funds. AAT strongly supports the Government’s determination to tackle money laundering and terrorist financing, so that the UK remains a safe and prosperous place to work and live. Next steps Whilst we have summarised key messages from the NRA, the document contains extensive information and intends to equip you with up-to-date assessment of the current and emerging risks so that you can identify, assess, understand and mitigate risks to which your firm may be exposed. We strongly encourage you to review it in full. Ensure your AML policies, controls and procedures, firm wide-risk assessment and your Client Due Diligence (CDD) measures reflect findings of the NRA 2025. If you have any staff members, ensure they are properly trained. If you know, suspect or have reasonable grounds for knowing or suspecting that a person is engaged in money laundering or dealing in criminal property, you must report it via Suspicious Activity Report to the National Crime Agency. Further guidance and support on risk management and other components of MLR compliance is available on our AML webpage. You can also contact us on +44 (0)20 7367 1347 or via email [email protected]. Celebrating our inspirational community Help us reward great work and spotlight exceptional people by nominating someone for AAT’s Impact Awards, open now. Nominate someone here